axiata group berhad | annual report 2015
184
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
15. RESERVES
Group
Company
Note
2015
2014
2015
2014
RM’000
RM’000
RM’000
RM’000
Restated
Distributable
Retained earnings
(a)
10,223,278
9,847,684
7,706,203
6,536,768
Non-distributable
Capital contribution reserve
(b)
16,598
16,598
16,598
16,598
Merger reserve
(c)
346,774
346,774
-
-
Hedging reserve
(d)
(255,992)
(131,518)
-
-
ESOS and RSA reserve
(e)
130,229
176,628
130,229
176,628
Actuarial reserve
(92)
(9,934)
-
-
Other reserve
(f)
(172,753)
-
-
-
AFS reserve
3,367
-
-
-
Currency translation differences arising from translation of:
- subsidiaries
702,032
(313,623)
-
-
- joint venture
3,598
-
-
-
- associates
225,481
(152,571)
-
-
931,111
(466,194)
-
-
Total
11,222,520
9,780,038
7,853,030
6,729,994
(a) Alternatively, the Company can also distribute tax exempt dividends from its tax exempt income account. The Company has tax exempt income
accounts as at 31 December 2015 amounting to approximately RM249.9 million (2014: RM202.5 million) available for distribution as tax exempt
dividends to shareholders subject to the availability of retained profits. The tax exempt income accounts are subject to agreement by the Inland
Revenue Board.
(b) The Group’s and the Company’s capital contribution reserve relates to the ESOS of Telekom Malaysia Berhad, former holding company, which
were made available to the employees of the Group and the Company.
(c) The Group’s merger reserve relates to the credit difference arising from the business combination accounted under the predecessor method of
accounting upon completion of the Group’s restructuring exercise on 25 April 2008.
(d) The Group’s hedging reserve relates to the net investment hedge and cash flow hedge arising from an effective hedge as disclosed in Note 19(e)
and Note 19(f) to the financial statements.
(e) The Group’s and the Company’s ESOS and RSA reserve relates to the Axiata Share Scheme of the Company, which were made available to the
employees of the Group and the Company as disclosed in Note 14(a) to the financial statements.
(f) The Group’s other reserve relates to the put option liability over shares held by NCI as disclosed in Note 19(d) to the financial statements.
